Stocks

GIFT City exchange possible by January: BSE chief

Our Bureau Mumbai | Updated on January 16, 2018 Published on October 14, 2016

The bourse plans to offer a variety of equity and derivative products

The BSE is confident of commencing operations of its international exchange in GIFT City (Gujarat International Finance Tec City) at Gandhinagar by January 2017, according to Ashishkumar Chauhan , MD & CEO, BSE.

Speaking at an event in Mumbai, celebrating 30 years of its benchmark index, the Sensex, Chauhan said: “The BSE has set up two entities — BSE International Exchange and BSE International Clearing Corporation, and about 13-14 members have already applied to MCA for the IFSC company. In the next one month, we believe, more than 100 brokers will apply to become members. We are in the process of deciding what products we need to offer in the first phase.”

“We are spending a lot of time and energy in Gandhinagar currently in setting up the GIFT City exchange. It will trade only in dollars. We are thinking on how the trading will happen. Of course, we have a team which has already covered the broad processes,” Chauhan added.

Inclusive trading

The BSE plans to offer products such as equity derivatives, including of the Sensex, commodities, currencies, interest rate futures, masala bonds and REITS, among others.

“We will trade in underlying, including depository receipts, including derivatives, not only of Indian origin but also of foreign origin. It will have a different way of life, our timings will be different, products will be different, they will basically be international products.”

Chauhan observed that the BSE relied on the S&P to provide a number of foreign indices and allow their trading in the GIFT City.

On the advantages of GIFT City , Chauhan said, “It has many advantages — it will have no STT, no CTT, no stamp duty, no DDT, no income tax for a certain (number of) years, no service tax. The only tax would be MAT if you are a corporate. Otherwise, it will be easier to operate as foreigners,” he concluded.

Published on October 14, 2016
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